top of page
  • rmacculloch

Yesterday, the Herald ran a prominent article which stated, "If you believe the economists, the world is about to go into a global recession. We won’t escape. Usually, when the world sneezes, we get pneumonia".

This falsehood is crucial to Labour's re-election prospects - namely, selling the "narrative" that NZ's problems are not of our own government's doing, but have been imported from abroad. The line from the Prime Minister ever since he took the job is that we are only probably going to have a recession this year because everyone else is going to have one. There is a Comms and Media strategy to put such an idea in voters minds.

So what do the economists at the IMF say about the world economy, as of April 2023?

"We expect global output growth to fall from 3.4% last year to 2.8% in 2023, before rising to 3% in 2024, mostly unchanged from our January projections".

Maybe the Herald should refrain from printing nonsense about global recessions, when the IMF projects the world economy will grow at 2.8% this year.

It's looking more like NZ will be one of the few economies in the world to fall into recession in 2023. Why? Since Chris Hipkins not only eliminated the virus (over the short-term), he also eliminated NZ's long-term prosperity.


On 4 March 2020 this exchange occurred in Parliament:

CHLÖE SWARBRICK (Green) to the Minister of Finance: Can he confirm it is his view that "the reality is fossil fuel investments are likely to be investments in stranded assets"?

Hon GRANT ROBERTSON (Minister of Finance): "Yes, and that's why I'm pleased our Government has announced that from next year, default KiwiSaver providers will not be allowed to invest into fossil fuel production".

Fossil fuel companies are sitting on worthless assets, soon to become "stranded" by the shift to renewables, making them dreadful investments, are they?

Let's see how Share Brokers Swarbrick and Robertson, who think they know a thing or two about investing, as well as politics, have done on their stock tips. Below is the share price of Exxon Oil in the United States from March 2020 when Swarbrick and Robertson had this exchange in the Kiwi Parliament up until today:

Exxon Share Price - 4 March 2020 to 14 May 2023

Exxon's share price has gone from around $US 40 to nearly $US 120, nearly tripling.

By forcing his beliefs onto ordinary Kiwis, Robertson has cost them the ability to make ends meet in retirement. Meanwhile Swarbrick should be sensitive to the fact that pursuing her environment causes is one thing - arguing oil companies are bad investments is another. In fact, millions of sophisticated investors disagree.

By the way, buying Exxon stock from an existing Exxon shareholder does not involve any funds being transferred to Exxon itself so has no material effect on carbon emissions.

Home: Blog2


Thanks for submitting!


Robert MacCulloch

bottom of page